Coinbase aims to replicate USDC success with tokenized stocks

Coinbase took a stablecoin that started as a side project, grew it into the second-largest dollar token in crypto, and turned USDC into the default currency of decentralized finance. Now the company wants to run the same play with stocks.

The exchange launched tokenized versions of US equities on its Base layer-2 network starting August 24, beginning with four tech giants: Nvidia, Apple, Meta, and Alphabet. Within the first month, cumulative decentralized exchange volume for those tokens surpassed $228 million, with daily volumes hitting roughly $100 million shortly after launch.

How the tokens actually work

Each tokenized stock, denoted with a “c” suffix like NVDAc or AAPLc, represents a 1:1 claim on an actual share of the underlying company. They are real equity positions, held in regulated custody by Alpaca under oversight from the Abu Dhabi Global Market.

CEO Brian Armstrong has described the approach as “true ownership,” where token holders possess actual equity in the companies represented on the blockchain. That framing is deliberate. Earlier attempts at tokenized stocks, from platforms like FTX and Binance, relied on synthetic structures that gave users price exposure without genuine ownership rights.

The tokens are built on Coinbase’s proprietary B20 standard, which enables compatibility with DeFi protocols. Users can already interact with these assets through platforms like Aave and Morpho, meaning tokenized Apple shares could theoretically serve as collateral for on-chain loans. Dividends are distributed automatically to holders.

The initial offering is structured under Regulation S, which means US persons are excluded from participation for now.

From four stocks to ten, and counting

On September 4, the platform added six more names: Amazon (AMZNc), Microsoft (MSFTc), Tesla (TSLAc), SpaceX (SPCXc), SanDisk (SNDKc), and MasterCard (MSTRc). The SpaceX inclusion stands out, given that the company’s shares are not publicly traded on traditional exchanges.

The company has described this initiative as part of becoming an “everything exchange,” a platform where users can trade crypto, earn yield, hold stablecoins, and now own fractional positions in major equities, all from a single interface.

A crowded field, but early innings

Coinbase is not alone in spotting this opportunity. Kraken and Robinhood are both developing their own tokenized stock solutions.

For the DeFi ecosystem specifically, tokenized stocks introduce an entirely new class of collateral. If NVDAc can be deposited into Aave as collateral for a USDC loan, the capital efficiency of on-chain markets improves dramatically. Users no longer need to choose between holding equities and participating in DeFi.

Coinbase’s decision to launch under Reg S and exclude US users is pragmatic but also limiting. If and when US regulators provide a framework for tokenized securities, Coinbase would be positioned to bring those products to domestic users. Until then, Coinbase is building its infrastructure and liquidity overseas.

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